Economic Injury Disaster Loans available

The La Junta Small Business Development Center at Otero Junior College would like to ensure that drought-affected businesses are aware of Economic Injury Disaster Loans (EIDLs) available through the United States Small Business Administration (SBA).

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LA Junta Tribune - La Junta, CO

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Posted Jun. 26, 2013 at 5:00 PM

Posted Jun. 26, 2013 at 5:00 PM

The La Junta Small Business Development Center at Otero Junior College would like to ensure that drought-affected businesses are aware of Economic Injury Disaster Loans (EIDLs) available through the United States Small Business Administration (SBA).

These working capital loans are designed to help area small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and private, non-profit organizations of all sizes to meet their ordinary and necessary financial obligations that cannot be met as a direct result of the drought.

EIDL assistance is available only to entities and their owners who cannot provide for their own recovery from non-government resources, as determined by the U.S. SBA.

To qualify for the loan, the applicant business must be located in the declared disaster area. Only uninsured or otherwise uncompensated disaster losses are eligible. The economic injury must be the direct result of the declared disaster. By law, agricultural enterprises such as farmers and ranchers are not eligible for any type of SBA assistance.

Applicants must meet credit history requirements and show the ability to repay the loan. Collateral is required for EIDLs over $5,000. The amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries.

The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum interest rate for this program is 4 percent. SBA will determine an appropriate installment payment based on the financial condition of each borrower, which will determine the loan term. EIDLs cannot be used to refinance long term debts.

For more information, contact Bill Dutro at Bill.Dutro@ojc.edu or 719-384-6959. Further information can also be obtained by contacting SBS’s Disaster Assistance Customer Service Center by calling (800) 659-2955, emailing disastercustomerservice@sba.gov, or visiting SBA’s website at www.sba.gov.